Wow.
Rula Giosmas is one of the beneficiaries. Last year she received a letter from Chase saying it was cutting in half the amount she owed on her condominium.
From the comments:
"This will generate taxable income under 26 USC section 108. A 1099 will be issued to the debtor with acopy to the IRS. The IRC Section 108 is entitled; Discharge of Indebtedness Income."
What do you think? Will the IRS pay attention?
Sunday, July 3, 2011
Northern Virginia Weekend Bits Bucket - Independence Day
Posted by Harriet at 4:24 PM
Subscribe to:
Post Comments (Atom)
10 comments:
The IRS will pay attention.
What's more interesting is Chase is starting write downs. Pity, if they had done that 3 years ago, they probably could have avoided putting millions of people through hell.
What's stupid is they aren't letting the ones who need this just file bankruptcy.
So it's got to be some deal where Chase is screwing their bond holders.
Again.
I thought that there is a special exception for forgiven mortgage debt on a pricipal residence in effect through 2012. This would not apply to second homes and investment properties.
I hope the IRS is looking at investment properties. I have purchased a number of shorts that were investor owned. In all cases the deficiency was forgiven (they were professionally negotiated shorts). These investors had homes and good jobs.
http://www.zerohedge.com/article/inventory-glut-ultra-luxury-homes-hits-greenwich-over-4-years-supply
interesting, the number of new entrants to the ultra rich club has declined.
now this is very unscientific, but i did a Franklymls search in DC for all properties over a million i got 323 listings. then i did the 2 year sales for all properties over a million and got 878.
so totally arbitrarily one can average about 439 sales over a million giving a supply equal to 9 months at that price level.
Not brutal levels of supply but clearly it's not going like hotcakes for the wealthy.
sorry i reran it, without a filter,
it was 417 over 1208 for 2 years or
417 over 604, or about 7 months supply. a little better for the high end, but, not supply shortage.
This is just not fair that they are forgiving said debts and people don't have consequences. It was worth that price when they bought it, or worth the risk when they HELOC'd it to high heaven. Now, forgiving portions of that debt basically teaches even more people there is no personal responsibility.
Sehr
What was the lessons from TARP
Go insane take huge bets If they go bad, Greenspan will bail you out.
all this is is the millions of people doing the same thing
I agree with sehrwunderbar. Just because banks were bailed out doesn't mean this isn't outrageous.
Good info! Thank you for the post. I concur with your conclusions and will eagerly look forward to your future updates.
Cape Coral Rental Management
Post a Comment